Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/263370 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15154
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the sources of wage growth over the life cycle, where individuals have the possibility to acquire vocational training at the start of their career. Wage growth is determined by sectoral and firm mobility, unobserved ability and the accumulation of human capital. Workers may move between two occupational sectors that require cognitive-abstract (CA) and routine-manual (RM) skills, and job mobility is induced by non-pecuniary job attributes and persistent firm-worker productivity matches. Estimating this model using longitudinal administrative data over three decades, we show that RM skills are a key driver of early wage growth while CA skills become important later on. Moreover, job amenities are an important determinant of mobility decisions. Vocational training has long term effects on career outcomes, affecting the type and quality of matches, with substantial internal rates of return both to the individual as well as society.
Subjects: 
job mobility
learning by doing
wage determination
apprenticeship training
JEL: 
J2
J3
J6
Document Type: 
Working Paper

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